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Sharp drop in Suez Canal revenues adds to Egypt's woes

Sharp drop in Suez Canal revenues adds to Egypt's woes

Egypt's already considerable economic problems took a turn for the worse last month as revenues from transit of shipping through the Suez Canal dropped by half as a result of security problems in  the Red Sea and the Gulf of Aden. Attacks by Houthi rebels on commercial vessels forced major shipping companies to divert away from the key global trade artery. Income from the international strategic waterway last month dropped to $428 million, compared to $804 million in January 2023, Osama Rabie, chairman of the Suez Canal Authority, said in an interview with Egyptian television channel ON TV. The total number of ships through the Suez Canal last month fell to 1,362 vessels, down 36 per cent from the 2,155 vessels navigating the canal during January 2023, he said. Houthi militants in Yemen began attacking commercial vessels in October in solidarity with the Palestinians in the Israel-Gaza war, and show no signs of retreating despite the US and Western allies attempting to deter the Iran-backed group with air strikes, which began on January 12.  Many shipping companies have rerouted their vessels away from the Red Sea to avoid the attacks, opting instead for the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa. The Suez Canal is the shortest sea route between Asia and Europe. With about 12 per cent of the world's shipping traffic passing through it, the waterway is a major facilitator of global trade. The canal is also a crucial source of foreign currency for Egypt. The North African economy, already grappling with record inflation and a heavy debt burden was further impacted by the Israel-Gaza war, which has slowed tourism and decreased shipping through the Suez Canal. Egypt is "particularly exposed" to the Red Sea shipping crisis as the country generates about 2.2 per cent of its gross domestic product in annual balance-of-payment receipts and 1.2 per cent of GDP in fiscal revenue from Suez Canal dues, the International Monetary Fund said in its regional economic outlook in January.

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Ambitious EU-Central Asia agenda requires political will and public engagement

Ambitious EU-Central Asia agenda requires political will and public engagement

It was overshadowed by more dramatic events in the world, yet despite this, the 19th  EU-Central Asia Ministerial meeting held in Luxembourg on 23 October was a significant event, and another step in the process of building closer co-operation between Europe and the countries of Central Asia. A statement from Brussels said that “for the EU, the Ministerial meeting was an opportunity to highlight its strong commitment to the region and stress the importance of deeper cooperation in the context of the challenges emerging from regional dynamics, with a focus on the fall-out of Russia’s war of aggression against Ukraine and the situation in Afghanistan.” A joint communique issued after the meeting covered a wide range of issues, and indicated the expanding agenda in the relations between the two group of countries. commonspace.eu political editor said in a comment that the documents coming out of the Luxembourg Meeting of EU and Central Asia foreign ministers on 23 October are significant – they are not only declaratory as sometimes such statements are, but also offer a large number of tangible frameworks, proposals and action points that should keep officials on both sides busy for a while. The two sides have set an ambitious agenda for their future co-operation, but implementing this agenda is going to require political commitment. That will ensure its success up to a point. More will depend on public engagement on both sides, and securing that may be even more challenging.
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Silk Road Forum opens in Tbilisi

Silk Road Forum opens in Tbilisi

The two-day Tbilisi Silk Road Forum “Connecting Today, Resilient Tomorrow” opened on October 26 with a speech by Georgian Prime Minister, Irakli Garibashvili. Over 2000 delegates from 63 countries, including the Prime Ministers of Armenia, Azerbaijan and Montenegro, are attending the event. In his address to the fourth edition of the Forum, Garibashvili said the Georgian Dream Government had built and maintained an “unprecedented and uninterrupted” decade of “peace and stability” since 2012, and had brought “confidence and predictability to our nation and our partners”. One of the major goals of my Government is to avoid war and secure peace. Despite issues posed by our geographic location, regional and global security challenges, including the ongoing war in Ukraine and alarming tensions in the Middle East, through prudent policies and close coordination with our partners, we have managed to keep our people and country safe while contributing as a responsible member of the international community”, he told the audience. Garibashvili reminded the Forum participants about a "full-scale military aggression" that Georgia experienced in 2008 and "continues to endure its consequences". This is still evident in the occupation of 20 percent of the Georgian territory by the Russian Federation and the displacement of hundreds of thousands of people from their homes. I confidently state that despite the devastation that we have suffered, we have not hesitated to pursue our ambitions. We have been gradually transforming Georgia into a dynamic society fully committed to peace, stability and economic development", he said. The PM also reviewed his Government’s Peaceful Neighbourhood Initiative for the region by saying “we are prepared to engage our neighbours and friendly nations of Armenia and Azerbaijan to finally bring lasting peace to the South Caucasus”.  Today, I am delighted to host both of my dear colleagues - [Armenian] Prime Minister Pashinyan and [Azerbaijani] Prime Minister Asadov”, he continued in the opening address. The Georgian official also stressed “permanent peace” would “benefit all of our countries” as well as the wider region, and bring “deserved prosperity to our nations”. 
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Dennis Sammut: The EU needs a comprehensive strategy towards the South Caucasus

Dennis Sammut: The EU needs a comprehensive strategy towards the South Caucasus

The 2023 APRI Forum is taking place at the Marriott Hotel in Yerevan on 25-27 October 2023. More than a hundred participants from Armenia and beyond are participating. Speaking at the event in Yerevan on Thursday, 26 October, LINKS Europe Director, Dr Dennis Sammut, spoke about relations between the European Union and the South Caucasus. He said that since the 1990s EU policy was guided by four pillars: Support for the independence of the three South Caucasus countries; support for peace and the peaceful resolution of conflicts in the region; political and economic stability; and prosperity. Whilst these principles guided EU policy towards the region there was not a comprehensive policy towards the region, mainly because the Armenia-Azerbaijan conflict made any sort of regional interaction difficult. Thus whilst there is an EU Strategy towards Central Asia, and towards the Black Sea Region, there is no EU strategy towards the South Caucasus. One of the consequences has been that the EU has mainly been conducting its relations with the three countries bilaterally. Dennis Sammut said that the time has now come to develop a regional approach in EU policy towards the region, and that an eventual Armenia-Azerbaijan normalisation of relations will open the way for this to happen. This opportunity needs to be seized. Dennis Sammut said that currently the EU has different contractual relations with the three South Caucasus, and bilateral relations will continue to be important. Speaking about EU Armenia relations, Dennis Sammut said that relations between the Armenian state and Europe were stronger today than they have been since the time of Byzantium. The challenge was to turn this from simply symbolic expressions to tangible co-operation. He said that the EU and Armenia should prioritise four sectors: Institution building; education; innovation and connectivity. Think tanks and civil society need to work to develop tangible ideas on how this work can be taken forward. The speaker warned that recent signs of displeasure in Moscow at the policies of the Armenian government may lead to some actions from Russia to try to put pressure on Armenia, and the EU needs to be ready to stand by Armenia in such circumstances. Dennis Sammut said that EU relations with the South Caucasus in general and with Armenia in particular need to keep in mind three important realities: first, the EU is not the provider of hard security – it is not a military alliance, such as NATO, and what it can provide in areas of security was limited; second the EU was not an ATM: it can provide financial support, as it has done in the past, but expectations of what kind of assistance can be expected need to be managed; third, the EU is not a charity, but a geo-political player. It has its own interests in the South Caucasus and these need to be recognised. A solid relationship is one in which both sides recognise the other’s interests. Dennis Sammut said that increased EU engagement in the South Caucasus may bring a reaction from Russia. Russia has for decades been trying to exclude other international actors from being active in the region. The EU is not interested in excluding anyone, but is not ready to be excluded either.
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Biden meets C5 leaders to confirm commitment for Central Asian countries security and prosperity

Biden meets C5 leaders to confirm commitment for Central Asian countries security and prosperity

US President, Joe Biden, on Tuesday (19 September) met in New York on the margins of the UN General Assembly, the leaders of the five Central Asian Republics. Attending the meeting were the presidents of Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. This was the inaugural C5+1 presidential summit.   A readout from the White House said that the leaders discussed a range of issues, including security, trade and investment, regional connectivity, the need to respect the sovereignty and territorial integrity of all nations, and ongoing reforms to improve governance and the rule of law. 
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Fidan in Kazakhstan as Turkiye consolidates its position in Central Asia

Fidan in Kazakhstan as Turkiye consolidates its position in Central Asia

Turkish Foreign Minister, Hakan Fidan was in Kazakhstan this as Türkiye intensifies its contacts with Central Asia, and the Turkic republics of the region with whom it shares strong historical and linguistic ties. In Astana, Fidan met with the country's president Kassym-Jomart Tokayev on Monday (11 September). This was Fidan's first visit to Kazakhstan after his appointment as Turkish Foreign Minister, He was previously head of the country's intelligence service. The visit is part of the preparations for the next summit of the Turkic States which will take place in Astana in November. The Organisation of Turkic States was established shortly after the collapse of the Soviet Union as Türkiye sought to rebuild old historical and ethnic and linguistic ties with the region. But at the time Russian pressure stopped the governments of the region from getting too close to Turkiye. The situation is now very different, and with governments across Central Asia seeking new openings to the rest of the world, the Turkish connection is becoming increasingly important. Fidan conveyed greetings from President Recep Tayyip Erdoğan, highlighting that the Turkish side intends to make every effort to promote cooperation between the two countries and take interaction within regional and international structures to a new level. According to Fidan, the Turkish President plans to comprehensively discuss the prospects for strengthening the strategic partnership between the two states during his upcoming visit in November, which is set to coincide with the summit of the Organization of Turkic States.